Generation X is Now Making a Comeback in Real Estate

According to National Association of REALTORS, Generation X is most likely to make a comeback in 2017. Most of them are going to sell houses after regaining much of the equity they lost during the recession.

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  1. If you calculate the median of tenure that an average person from Generation X has been spending in a home, it is 10 years. It means that most of the homes they are living in were bought right before the time when prices fell down steeply. Due to 41% rise in the homes’ prices 2011, the general equity is built in such a way that the houses, whose values were affected by real estate crash, can now be sold at a substantial rate. So, this year is going to belong to Generation X, which is going to be pretty active in selling houses, easing down the inventory shortage at a great extent across the country.
  2. For the recent past years, people belonging to millennial age group have taken charge of the real estate industry in the country. Now, however, the New Year has started with Generation X taking more interest in buying and selling houses, and this trend is definitely going to create better prospects for the real estate industry in general.
  3. A survey report suggests 28% rise in Generation X homebuyers. This percentage is the higher one since 2014. However, this percentage is still lesser than that of millennials, 34%, and also that of baby boomers, 30%. There is also a strong trend of multigenerational living as baby boomers are now acquiring houses that accommodate their adult children.
  4. Lawrence Yun, chief economist at NAR, says, “The job market is very healthy for young adults with a college education, but repaying student debt and dealing with ever-increasing rents on an entry-level salary are forcing many to either shack up with several roommates or move back home. This growing trend of delayed household formation is one of the main contributors to the nation’s low homeownership rate.
  5. Another issue that has been causing concern for Generation Xers and boomers is student loan debt. This loan affects the individual’s ability to save the down payment. With that said, 55% of millennial people, 29% of Generation Xers and 9% of boomers have reported that student loan has choked their progress of raising money for down payments.
  6. According to Yun, “Repaying student debt also appears to be slowing some current homeowners who went to graduate school and now can no longer afford to sell and trade up because of their loans. Nearly a third of homeowners in a NAR survey released last year said student debt is preventing them from selling a home to buy a new one.
  7. Alongside Generation X, Millennial people are also seen engaging in home buying more than before. One major reason is the presence of children. According to a survey, about 49% millennials have at least one child. This situation surely demands those people to buy homes in suburbs.
  8. How the Market Is Favoring Generation X - Raleigh Real Estate Agent
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